You’re working your hardest to save money, and the big question is, when is your savings going to matter finally? That’s why we bring you our savings calculator with interest. It is an easy way to run your numbers so you can see how low it will take to save up any amount or watch your savings grow with compounding interest. Best of all, this compound interest calculator is completely free.
Savings Calculator with Interest
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How to Use the Savings Calculator with Compound Interest
Check out this YouTube video to see how to use the savings calculator.
A Breakdown of the Calculator
This savings calculator is designed to show you how your savings can add up over time. This savings calculator app can show you how much interest your savings can yield over time. It will also show you how much compound interest your savings will accrue over the years you specify. Here is how the savings calculator breaks down.
Initial Savings Details
This section is to set up your starting amount. We will go into each section one step at a time.
Starting Savings Amount
This is how much money you are starting with. It can be what you have in a savings account currently or how much you possibly have in other types of savings vehicles such as bonds, GIC, or any other investment where you can accurately rely on the interest rate.
Annual Interest Rate %
This slider adjusts for how much interest you will accrue on an annual basis. The formula we use is based on a compounding interest model so you can see how your savings will grow faster over time. We use an annual percentage yield to calculate the interest.
Years
This is the number of years you plan on saving. This amount will also affect the next part of how much you are saving and how often. The more years you are saving, the longer you have to grow your savings.
Contribution Amount
If you want to make regular contributions to your savings amount, you can enter a regular amount that you are saving. This ongoing savings amount means you can save a set amount over a regular period of time.
On-going Savings Amount
This is the amount that you plan to save on-going over time. If you want to do a one-time savings calculation, then it is best to leave this as 0 and use the starting savings amount as your initial lump sum.
Frequency of Savings
These savings that you want to do regularly will depend on your frequency of saving.
This savings calculator also means that you do the following:
Weekly Savings Calculator if you are paid weekly.
Monthly Savings Calculator if you plan on making monthly contributions.
Bi-weekly Savings Calculator if you are paid bi-weekly and want to put in a set amount every time you are paid.
Savings Summary
This is the section that shows you the potential results of all your numbers.
Total Amount Saved
This is everything rolled into one. It includes your initial savings amount, your regular contributions, and the interest that has accrued on both based on the interest rate and term you entered in above.
Total Contributions
This is the total of all the amounts that you have contributed in the second section.
Total Interest on Initial Savings
If you are wondering how much that initial amount in your account will grow over time, now you know. This amount is the interest that your initial amount would earn over time if you did nothing else but leave it in the account.
Total Interest on Contributions
This is the amount of interest that has been growing over time with your regular contributions.
Tips For Getting the Most Out of the Savings Calculator
Start with what you have and see what happens. Most of us will start with a small amount and see what impact it can have. The next thing is to play with the savings calculator with compound interest.
This is where you see the amount grow because your interest begins to earn interest over time. Albert Einstein called this the 8th wonder of the World; he was right. The effect it has on your savings can be staggering.
Now see what impact this savings calculator will have on your saving goals and then look at some savings accounts.